Insurance Premiums Frequently Asked Questions
What are the main factors affecting life insurance premiums? Read on to find out
Policy type and coverage amount are among the factors that determine the premium for a life insurance policy. Consumers should compare prices to find the best coverage for their money. Many people must purchase a life insurance policy when they take out a mortgage.
Though purchasing a policy to cover the mortgage balance in the event of death is a good idea, the mortgage lender may not provide the most comprehensive or least expensive policy. Some people do not realise this and end up paying more than they should because they did not compare quotes before buying coverage.
How does my age affect my life insurance premiums?
The older you are, the higher your life insurance premium is, and the difference can be substantial. An individual aged 60 may pay up to 10 times as much for coverage as someone in their early 20s. One exception to premiums increasing with age is an over-50s plan, which pools premiums and does not require a medical examination.
Do life insurance premiums differ for women and men?
Women tend to live longer, so when all other aspects of coverage are equal, premiums are usually lower for women.
Does having a serious illness affect life insurance premiums?
A person who suffers from a serious illness or who is in the initial three years of recovering from one will probably pay a higher premium for life insurance. A whole-of-life policy that does not require a medical examination may be one exception. However, consumers should read the whole-of-life policy terms and conditions, as premiums may increase significantly in later years.
Will it be less expensive to purchase a joint life policy with a partner than for each person to purchase individual coverage?
A joint life insurance policy may sometimes have a lower premium, especially if you are younger than 30 years old. However, purchasing two individual policies may not be much more expensive. In addition, having two individual policies will provide a payout upon each insured’s death, providing double protection. Compare policies and quotes for each option to find the best coverage for the money.
